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Suppose labor's share of GDP is 70 percent and capital's is 30 percent, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3 percent. What is the growth rate of total factor productivity?
Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate.
The price in a market is dominated by two firm is affected by the quantities supplied by both firms, Q1 and Q2: P = 120 - (Q1 + Q2). The marginal cost for the two firm is identical and constant and equal to 20.
What is the t-statistic or t-ratio? If we wish to accept the null with 99% confidence, what should our t-stat and p-value be
What are your firm's key resources and/or capabilities? How do these translate into a competitive advantage?
A particular segment of the medical device industry is dominated by a handful of firms. These firms have combined into an effective cartel. All firms in the cartel have the same cost structure with zero fixed costs and each has constant marginal c..
Evren wants to go into the donut business. For $500 per month he can rent a bakery complete with all the equipment he needs to make a dozen different kinds of donuts (K = 1; r = 500). He must pay unionized donut bakers a monthly salary of $400 eac..
The chapter defines private enterprise as a characteristic of market-oriented economies
Why do you suppose the portion of final goods expenditures that goes to pay for intermediate goods or raw materials is excluded from the income method of calculation?
Explain what the index of intra-industry trade shows, and suggest why the values of this index for Japan and Germany are so different.
Suppose customers believe that the good they are buying is of high quality with a probability of p, and of low quality with probability 1 - p. A high quality good is valued at vH and costs cH to produce, while a low quality good is valued at vL an..
Consider a firm which is characterized by cost function c(y)=y^3-6y^2+10y+32. a) Describe the firm's entry-exit decision. b) Describe the firm's operation-shutdown decision. c) Describe the firm's supply.
What percentage of the population of each country is in the labour force and what are the similarities and differences between the three countries in terms of the percentage of the population that works in each type of industry?
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